 |
Photo courtesy of Yonhap News |
[Alpha Biz= Kim Jisun] Seoul, September 24, 2025 – KT&G announced that it has signed a contract to sell its Euljiro Tower in central Seoul to Cheon Kyung Shipping for approximately KRW 120 billion, marking another step in the company’s ongoing portfolio optimization strategy.
KT&G had originally acquired the 18,188㎡ building in 2014 from Golden Bridge Partners for KRW 61.2 billion. The latest deal allows the company to realize about KRW 60 billion in capital gains over 11 years.
Recent and Planned Divestments
Bundang Tower (Seongnam, Gyeonggi Province): Sold in 2024 to Pebblestone Asset Management for KRW 124.7 billion.
Courtyard Marriott Seoul Namdaemun Hotel: Currently under sales process, with Heungkuk REITs selected as preferred bidder; estimated sale price around KRW 200 billion.
Other assets under review: Sejong Towers P2 & P3, Suwon Building, Daegu Building, and Jung-Busan site.
Strategy and Capital Allocation
During the 2010s, KT&G invested surplus cash from its tobacco business into real estate. Today, the company is actively restructuring non-core and low-yield assets to focus on its core operations and enhance shareholder returns.
By 2027, KT&G plans to dispose of 57 real estate properties (including low-yield rental offices, commercial buildings, and idle assets) and 60 financial assets, targeting KRW 1 trillion in cash.
These proceeds will support shareholder return commitments totaling KRW 3.7 trillion by 2027, including:
KRW 2.4 trillion in cash dividends
KRW 1.3 trillion in share buybacks
A KT&G spokesperson said:
“Through the restructuring of underperforming and non-core real estate and financial assets, we aim to secure capital for growth investments that strengthen our core business, while also enhancing shareholder value through expanded returns.”
Alphabiz Reporter Kim Jisun(stockmk2020@alphabiz.co.kr)
